The Market Supply Curve

Precision in Using Words or Economics as a Second Language

Individual Firm's Supply Curves The lower the price, the smaller the quantity supplied, other things being equal. The higher the price, the greater the quantity supplied, ceteris paribus. This is true for each firm, so each firm has an upward-sloping supply curve. The Market Supply Curve The Market Supply Curve is what each firm will produce at a given price, so that graphically it is the horizontal sum of the firm's supply curves.

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